An Interview with Ron Paul

There are very few political figures for whom I have any respect. One exception
is Congressman Ron Paul (R-TX). Ron has been a personal friend of mine for
many years. I can assure you that he's a "stand up guy," who has voted "no" more
times in Congress not just more than any other member, but more than the rest
of that august body combined. He's often called "Dr. No."

The fact that he has managed to get reelected numerous times -- in Texas,
of all places -- in spite of his outspoken stands against the so-called "War
on Drugs," the "War on Terror" and other popular stupidities is one of the
few things that make me think all is not absolutely lost in America.

How does he do it? Ron's an almost archetypical country doctor; he simply
radiates honesty and sound principles. He's about the last person you'd expect
to see in Congress. The voters may not agree with everything Ron believes in,
but they know they can trust him to do what he says he'll do: always vote for
lower taxes, less regulation and, in fact, against absolutely anything not
specifically authorized in the U.S. Constitution.

His campaign for the U.S. presidency on the Republican ticket - once laughed
at by mainstream apparatchiks from both parties - has generated a huge groundswell
of national support. Recently, his campaign broke the record for the most funds
raised online in a single day. That, in itself, raised a lot of eyebrows -
and the money has since been put into high-profile ad campaigns libertarian-minded
candidates could previously only dream of.

Ron is famous for his principled rejection of fiat currency, and advocacy
of hard money - the gold standard. That's a matter of particular interest to
us, with obvious investment implications. We thought, therefore, we'd get an
update from Ron, to see if his thinking has changed any.

The following interview is from the December 2007 edition of the International
Speculator, our flagship publication dedicated to uncovering highly prospective
opportunities in pretty much any market sector, but these days mostly in
junior precious metals exploration stocks - a sector that has treated subscribers
very, very well in recent years.

And they should only continue to do well unless Boobus americanus stands
up on his hind legs and demands some radical changes, at which point we'd happily
sell the gold we own as a hedge against the fiscal calamity that is now all
but inevitable. Importantly, Ron Paul's campaign isn't about the relatively
trivial issue of who should govern, Tweedledee or Tweedledum. It's about what
the nature of the government should be - and how much and how fast we can cut
it down.

CR: Why would the typical American, who gets far more from government than
he or she pays, even consider voting for Ron Paul?

RP: Even those Americans who receive a higher nominal amount in transfer
payments than they pay in income taxes suffer from Big Government. Their standard
of living is eroded by inflation, their wages are garnished by income and payroll
taxes, their civil liberties are under constant assault, and their economic
prospects are limited because of the drag the welfare-warfare state places
on the economy. Furthermore, unless we reverse course quickly, future generations
will suffer a declining standard of living and loss of liberty. Thus, I expect
many Americans to vote for me not only out of concern for their own well-being,
but out of concern for their children.

CR: What is your outlook for the U.S. dollar, absent any significant change
in the current course of things?

RP: Unless we return to a sensible monetary policy and rein in government
spending, I expect the value of the dollar to continue to fall.

CR: Do you think we could see currency or capital controls being implemented?

RP: History shows that governments tend to react to economic crises
by increasing government control over the free market, so, yes, it is quite
possible that the U.S. Government will respond to a future economic downturn
with currency and capital controls.

CR: We have seen the other presidential candidates perform all sorts of
linguistic gymnastics when asked how they would handle the looming fiscal
problems of Social Security and Medicare. While the solutions will obviously
not be quick or easy, where would you start?

RP: I would transfer some of the money saved by my cuts in foreign
programs and unconstitutional domestic bureaucracies into the entitlements
programs to keep the promises to those relying on the system. I would then
work to transition to a market system, phasing in an option for younger workers
to opt out of Social Security and Medicare taxes in return for agreeing to
provide for their own retirement and health care needs without participating
in a government entitlement program.

CR: Further on domestic issues, just what do you think the role of the
federal government should be?

RP: Ideally, it should be limited to providing protection from foreign
threats, securing the borders and ensuring free trade among the states.

CR: By what % would you estimate that federal government spending could
be cut without causing any great hardship? Which agencies would you cut first?

RP: I don't have an exact percentage, but I am confident that if the
welfare state were cut, along with a corresponding reduction in taxes, private
charities would quickly step up to help the truly needy - and do so in a much
more effective and compassionate way than government bureaucracies. I would
cut the Iraq war, foreign aid and all foreign commitments immediately. Domestically,
I would work to shut down the Departments of Education, Energy, and Commerce.
I would also work to eliminate all forms of corporate welfare and business
subsidies.

CR: Any idea how much of the total federal debt could be paid off if the
government sold all the land, buildings, equipment and other assets it doesn't
need for activities authorized by the Constitution?

RP: I do not have an estimate on that, but it is definitely something
I would pursue.

CR: There is much talk about the Chinese deliberately keeping their currency
cheap in order to undercut U.S. and European manufacturers. And we are increasingly
hearing discussions about layering on more tariffs aimed at the Chinese.
We assume you are anti-tariff, so do you do anything at all about "unfair" competition
or just let the global marketplace sort things out over time?

RP: The United States does not have the authority to tell China, or
any other country, what to do with their currencies. The values of currencies
should be set by the market. Instead of worrying about the speck in China's
eye, I would focus on the beam in our eye by reducing the national debt, restoring
a market in currency by repealing the legal tender laws and ending the continued
debasement of the American currency.

CR: Much of the politicking this campaign season has certain religious
overtones. Are you a believer in a strict separation of church and state?

RP: Yes. However, I believe state and local communities have the right
to adopt policies such as school prayer without interference from the Federal
Judiciary or any other branch of the federal government.

Doug Casey is a highly respected author, publisher and professional investor
who graduated from Georgetown University in 1968.

Doug literally wrote the book on profiting from periods of economic turmoil:
his book Crisis Investing spent multiple weeks as #1 on the New York Times
bestseller list and became the best-selling financial book of 1980 with 438,640
copies sold; surpassing big-caliber names, like Free to Choose by Milton Friedman,
The Real War by Richard Nixon, and Cosmos by Carl Sagan.

Then Doug broke the record with his next book, Strategic Investing, by receiving
the largest advance ever paid for a financial book at the time. Interestingly
enough, Doug's book The International Man was the most sold book in the history
of Rhodesia.

He has been a featured guest on hundreds of radio and TV shows, including
David Letterman, Merv Griffin, Charlie Rose, Phil Donahue, Regis Philbin, Maury
Povich, NBC News and CNN; and has been the topic of numerous features in periodicals
such as Time, Forbes, People, and the Washington Post.

Doug, who divides his time between homes in Aspen, Colorado; Auckland, New
Zealand; and Salta, Argentina, has written newsletters and alert services for
sophisticated investors for over 28 years. Doug has lived in 10 countries and
visited over 175.

In addition to having served as a trustee on the Board of Governors of Washington
College and Northwoods University, Doug has been a director and advisor to
nine different financial corporations.

Doug is widely respected as one of the preeminent authorities on "rational
speculation," especially in the high-potential natural resource sector.

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